As debt levels continue to rise, the Debt-Free Day initiative provides a lifeline for individuals facing financial difficulties. This initiative offers a toll-free helpline and a dedicated website where experts can provide guidance and advice to those burdened by debt.

The average debt per individual has been steadily increasing, reaching 35,000 Czech koruna this year, marking a nearly 20% rise from the previous year’s average of 29,500 Czech koruna. Men constitute the majority of debtors, accounting for 56% of the total, with an average debt amount of 37,800 Czech koruna.

The Moravian-Silesian Region continues to have the highest number of debtors, representing over fifteen percent of the total, with an average debt of 32,500 Czech koruna. Debtors in Prague, on the other hand, have the highest average debt, amounting to 42,000 Czech koruna, and comprise seven percent of all debtors.

These findings were reported by Kruk Česká a Slovenská republika in collaboration with the Ministry of Labor and experts from non-profit organizations such as Charity ČR and the Association of Civic Advice Centers. The most common reasons for debt non-payment are unemployment and high loan repayments, which are closely interconnected.

Jaroslava Palendalová, the CEO of Kruk Česká a Slovenská republika, highlights the increasing number of people facing situations where their reduced income cannot cover their expenses, leaving them uncertain about the way forward. The initiative aims to provide support to individuals facing such challenges.

As part of the initiative, individuals can utilize a toll-free helpline at 800 700 880 during the month of November to seek advice or visit the website www.nasedluhy.cz to ask their questions. Additionally, individuals interested in obtaining a report from the Central Register of Executions can do so free of charge through a collaboration between Kruk Česká a Slovenská republika and the project Kolikmam.cz. This report provides information on whether there are any ongoing executions against them.

The Debt-Free Day initiative also extends its assistance to Ukrainian citizens, offering guidance on managing finances within the Czech environment and providing tips for borrowing money safely.

Daniel Krištof, the CEO of the Czech Ministry of Labor, emphasizes the importance of building and maintaining a safety net that can catch and help individuals in need. He invites people to participate in the Debt-Free Day project, recognizing that anyone can find themselves in difficult financial situations and benefit from support and guidance.

Article by Prague Forum